Ripple and the SEC agree on one thing: let the judge decide on the fate of XRP
Ripple and the SEC agree on one thing: let the judge decide on the fate of XRP
- ripple believes that the securities supervisory authority has no factual dispute and therefore does not have to bring to court
- The SEC "Can't pass a single point of the Howey test of the Supreme Court," said General Counsel Stuart Alderoty
Blockchain company Ripple Labs and the US WERTALPOPURABLE want to decide that a judge of the Federal Court of Justice decides December 2020 that the company had wrong 1.3 billion dollars applied.
In separate applications submitted on September 17, both parties called for a summary judgment to decide whether Ripple violates Federal Working Act or dismiss the case as a whole. Summary judgments are usually submitted if one or all parties believe that sufficient evidence has been presented to make a decision without being necessary.
Representative for Sek asked judge Anisa torres on, on the basis of evidence documents submitted in a courtyard database on September 13, and to come to a conclusion in this case.
The SEC complained about two years ago for allegations that the SEC complained-founder Christian Larsen and CEO Brad Garlinghouse-that funds had collected money through the sale of XRP token.
In return, Ripple denied the allegations and claimed that XRP should be treated as a virtual currency and not as a security. She believes that the regulatory authority has no evidence to support its argument and therefore have no factual disputes.
"When asked in Discovery, the SEC refused to identify a contractual basis for a single offer and the sale of XRP. Since the definition of an" investment contract "in the Securities Act requires an underlying contract, the SEC has no case to go to court." Ripple wrote in his application.
In August last year, the company forced to determine how the Howey Supreme Court to determine whether a transaction is qualified as an investment contract - Ripple’s transactions in XRP.
Ripplingeral Counsel Stuart Alderoty He tweets that the SEC cannot justify its claims. "After two years of the legal dispute, the SEC is unable to identify an investment contract (that's how the law demands); and cannot exist a single point of the Howey test of the Supreme Court. Everything else is only noise," he wrote.
The result of this case would be a significant precedent, since it would help with the determination which cryptocurrencies can be called securities. If the SEC wins, XRP would be considered a security.
ripple and XRP are independent
ripple and XRP were often confused because they are the same, and even Google searches for "XRP" usually return ripple as a result.
But Ripple is a software company that is independent of XRP, and XRP also exists without ripple. Ripple does not spend the XRP token out or does not monitor it. The chief market strategist of the company, Cory Johnson, pointed out a hin yahoo Financial summit 2018 he was frustrated that people are unable to distinguish between the two.
"I mean, nobody calls Exxon Mobil Oil. Exxon Mobil has a reasonable interest in oil successful, but that doesn't mean it is the same," he said.
The decisive factor for the government's argument is the fact that XRP does not occur in nature, but rather its 100 billion tokens were more created by him Ripple Labs, through a so -called imminent.
co-founder, ex-CEO and chairman of the board of chris Larsen, co-founder Jed McCaleb and the current CEO Brad Garlinghouse received all billions of XRP-token and Ripple Labs itself has around 45 billion XRP in the trust account .
rippledie defenders from Ethereum have often tried to move parallels to Ethereum, which, according to some members of the Sec, is not a security. No clear guidance has yet been given to what is a "sufficient decentralization" in order to change the naming of the agency.
For comparison, XRP currently has 138 tester compared to the post-merge count of Ethereum from about 430,000 .
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